Charlesbank Capital Partners has invested in the non-legal operations of US law firm Wood Smith Henning & Berman (WSHB) in a transaction reportedly valuing the business at approximately $700m, according to a report by Reuters.
The Los Angeles-based firm, which employs more than 550 lawyers across 23 US states, has established WSHB Support Services, a management services organisation that will provide operational infrastructure and administrative support.
Charlesbank’s investment will support geographic expansion and technology development, including artificial intelligence and data science capabilities. Financial terms were not disclosed, although the Financial Times previously reported the $700m valuation.
The transaction follows increasing private equity interest in legal services, with investors targeting opportunities to consolidate operations and expand technology capabilities.
The management services structure allows private equity firms to invest in law firms’ non-legal operations while complying with US regulations that generally prohibit non-lawyers from owning law practices or sharing legal fees.
WSHB will reportedly remain an independent law firm, retaining control of its legal practice and client relationships. The firm specialises in representing insurers, self-insured corporations and institutional clients.
The transaction is among a growing number of private equity investments in legal services platforms as firms seek to capitalise on operational efficiencies and technology adoption across the sector.
